Chris Leslie
Main Page: Chris Leslie (The Independent Group for Change - Nottingham East)Department Debates - View all Chris Leslie's debates with the HM Treasury
(11 years, 1 month ago)
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It is a pleasure to serve under your chairmanship, Mr Bayley. I join my hon. Friends in congratulating my hon. Friend the Member for Bethnal Green and Bow (Rushanara Ali) on securing this important and very timely debate: we are coming up to a period when the clock is ticking and those who might be affected are facing the prospect of significant anxiety and a change in the circumstances. It is an incredibly important point that she and others who have participated, on a cross-party basis, have been making.
Given the realities of internationalism these days and the crises that some families can encounter, the ability for people to support their family is part and parcel of the warp and weft of much of society. The role that legitimate small and medium-sized remittance and money transfer companies play should not be ignored; it is absolutely crucial. However, it is no surprise, given what has been happening in financial services in the past couple of years, that a lot of the agenda of the anti-money laundering reforms to deal with particular concerns is beginning now to bite. As my hon. Friend the Member for Cardiff West (Kevin Brennan) commented, it is more than ironic that it tends to be the smaller firms that end up being punished most of all, when the anti-money laundering reforms that we require and some of the changes need to be made particularly by the larger organisations. They are the ones where, in my view, there is a significant risk.
My hon. Friend the Member for Ilford South (Mike Gapes) made a pertinent point in the speech preceding mine about the fact that we should not see this only as a commercial matter—we should not take a laissez-faire approach and let the market decide—because ultimately, regulators and public policy are very much part and parcel of what is happening here. It is also not only a UK question, but a global matter, which requires leadership from UK Government authorities to do something now to sort out the problem.
Of course, it is vital that strong steps be taken to deal with the risks of money laundering. Nobody is arguing against that, but we cannot turn a blind eye to the impact that crude, blanket attitudes to these issues might have on real lives and businesses. We do not want to find ourselves with perverse consequences occurring in the endeavour to solve a very real problem. As my hon. Friend the Member for Bethnal Green and Bow said, particularly in this month of Ramadan, when so many of my constituents and hers are making charitable donations—small sums of money—and sending them abroad, it is a good time to be thinking about the solution.
The points that many hon. Members have made about Somalia and Somaliland are very relevant. There is the need to ensure that this is not seen only as a Treasury concern, but as one that touches on policy questions in the Foreign and Commonwealth Office and the Department for International Development. We need to see all those branches of Government working together in co-ordination on the issue. My hon. Friend the Member for Rochdale (Simon Danczuk) made a number of strong points, particularly on the dangers of ending up with a less competitive market here, especially where fees and exchange rates would be higher for the consumer and where access to those services is potentially at risk.
I would be the last person to voice concern for some of the big banks on this one. They can and should do much more, but it would not be right simply to pin this on one banking institution, which might be at the end of a queue on this issue. However, I would like the Minister to say what conversations he has been having with Barclays bank, in particular, about the imminent decision. To me, it seems not only that a long-term problem must be resolved, but that we are facing an immediate short-term crisis. Will the Minister address the discussions with Barclays, in particular, about the grace period and the extent to which there needs to be a different time frame to the approach being taken?
We have to focus on solutions now, and it is important that we give the Minister ample time to address those, so that we can cross-examine him and scrutinise the Government’s attitude. I just want to raise a number of points with him. Does he agree that it should be incumbent on the banks, as well as the regulators, to tell the industry—those small firms—what due diligence, improvements and audit checks they feel are necessary to overcome some of the hurdles and concerns? They would be the first to want to put beyond doubt any concerns that might exist about them.
As well as the Minister saying whether he has been able to talk to Barclays, will he address the questions that go beyond the United Kingdom? Clearly, the United States has a slightly different regulatory attitude, which is impinging very much on the larger banks and Barclays in particular. Therefore, we need to know what conversations have happened so far and ought to be happening with the American regulators and with the US Treasury Department and the State Department. Can we have some co-ordination with those other authorities? We do not want to see money laundering risks any more than the Americans do, but they will also be facing their own problems internally in the United States on some of these questions, because they are also a diverse society and a diverse community. Can we align ourselves to ensure not only that we have a gold standard of anti-money laundering practices, but that we do not throw the baby out with the bathwater?
What conversations has the Minister had with the Department for International Development and the Financial Conduct Authority? The FCA is a brand-new regulator, which has been operating for several months. It has a consumer remit and a competition remit. It seems to me that the FCA needs to be firmly involved in the issue and that it may have some expertise to bring to bear.
Suggested solutions have involved guarantees from the state or some sort of underwriting. Should the state-owned banks take that on their shoulders? The Bank of England has been mentioned perhaps as a way to do that in the short term. I am a little wary about the taxpayer ending up always being the one who must bear the burden of the solution; but clearly, as my hon. Friend the Member for Bethnal Green and Bow pointed out, the issue cuts across our international aid and development policies in another bit of the Government. We do not want to see Somalia, for example, retrench in development terms because of something that has been happening in another branch of the Government. I wonder what the Minister’s attitude is to those aspects and, in particular, to whether some aid agencies might be part and parcel of a solution in the interim, until we get some of the regulatory issues ironed out.
Can we have a round-table discussion with the whole sector and particularly with small and medium-sized businesses, involving not just the regulators but the Treasury, the Department for International Development and the FCO, and can we have that quickly? We are coming up to the summer holidays, but that is no excuse. The deadline is expiring very soon, and all hon. Members will want action taken, particularly on the issues that my hon. Friends the Members for Brent North (Barry Gardiner) and for Cardiff South and Penarth (Stephen Doughty) and others have talked about in their contributions.
As I said, I want to give the Minister time to respond, so that we can question him on policy. In summary, this cannot just be left as a commercial decision. We cannot say, “We are walking away from this. We don’t care about it. This is just one company making a particular call on this matter.” It is not just a market question. There is a downstream consequence from public policy, and it is therefore incumbent on us to get public policy right—to go the extra mile and ensure that we spend the time and effort necessary to find a solution. I just do not believe that having strong anti-money laundering policies is anathema to having proper facilities for diaspora communities to provide decent family support on an international basis. That is the sort of society that we need to support at this time.